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Ringtone reality check: India cellphone story long way to go

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  • India hopes to be a telecom major by 2020 but trends indicate it is still on the dark side of the wireless divide: rural teledensity is still at 2 per cent, roughly where it was at the time of Independence, as against 40 per cent teledensity in the urban areas.

    Fresh data for 2005-06 filed by telecom regulators the world over shows that mobile phones are a much bigger story elsewhere in the world, even in the neighbourhood.

    Mobile phones have now reached 8 per cent of India’s 1 billion-strong population but in March 2006 Pakistan achieved a mobile teledensity of 14 per cent, clocking an impressive 170 per cent growth rate the previous year. India’s mobile teledensity is growing at 60-65 per cent a year.

    Strife-torn Sri Lanka has al so done well: it crossed the 17 per cent mobile teledensity mark in early 2006 and its mobile phones are growing at 50 per cent every year. Bangladesh too has gone places: It registered a 138 per cent mobile phone growth rate in 2005 which no one expects to falter.

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    Nripendra Mishra, chairman of the Telecom Regulatory Authority of India, says “I think changes in rural India’s teledensity will show up in the next six or eight months — the moment we announce that the Universal Service Obligation (USO) fund will be given out for cellular telephony. In addition, new technologies like WiFi and WiMax will go into rural areas sooner than the land lines or mobile phone networks, and will make a serious impact for the better.’’

    ... contd.

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